January 8, 2022
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Editors’ Choice for Regular Income Fund
Scheme : Kotak Debt Hybrid Fund ( Category ) Regular Income
First we will provide you with some facts and then we shall give our guidance.
This Scheme was Launched in January 2013
AUM: Rs. 1206 crore at present.
Investment strategy of this fund:
The Scheme seeks to enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments. By investing in debt securities, the Scheme will aim at generating regular returns, while enhancement of return is intended through investing in equity and equity related securities.
Benchmark : Crisil Hybrid 85+15
Investment Pattern :
Equity : 24.80 % of AUM
Debt : 63.10 of AUM
Cash/ Liquid: 12.10% of AUM
Past Performance Tracker
(Returns of Benchmark are indicated in the bracket)
Fund has provided 11.21 % return p.a. since its launch.
During last 1 years, it has provided return of 14.48 % pa (11.31% ),
During last 3 years, it has provided return of 14.46 % pa( 10.72% ) and
During last 5 years, the fund has provided return of 10.76 % pa( 9.75 % )
Peer Comparison : AUM 1Yr 3Yr 5Yr
1) SBI Conservative Hybrid Fund ( AUM Rs. 5338 Cr ) 1 Yr Return : 13.82 %
2) ICICI Pru. Regular Savings Fund ( AUM Rs. 3375 Cr ) 1 Yr Return : 11.16 %
How you can invest :
Min of Rs. 5000 and thereafter in multiple of Rs. 1000
for SIP : Min of Rs.1000 and Minimum of 6 cheques .
Editorial Observations:
Conservative hybrid funds invest roughly a quarter of AUM in equity shares and the balance in Debt instruments. These funds are suitable for those who cannot withstand too much volatility in the value of their investments and are content with moderate returns which are slightly higher than returns from fixed income options.
They may also suit those looking for a regular income from their accumulation. The debt portion of these funds provides a moderate, but steady stream of income. The small equity allocation though adds a bit of volatility, but helps boost returns to keep up with the rate of inflation over the long term. Kotak Debt hybrid Fund has provided impressive returns during various tenures and has been consistent performer. The study of the components of Equity portion clearly indicate the investment in strong performer stocks and strong liquidity. For the investors , who wish to go for Regular income funds, we suggest this fund. ( Analysis on 8th Janaury 2022)